ExxonMobil to Shut Mossmorran Plant Blames UK Policies and High Costs

ExxonMobil has announced the closure of its Fife Ethylene Plant at Mossmorran in Scotland, attributing the decision to UK government policies and persistent high costs. The plant, operating since 1985, is set to wind down in February after four decades as a significant contributor to the UK’s chemical production sector. The closure will impact 179 direct jobs and 250 contract positions, placing over 400 roles at risk.

The facility’s output, primarily ethylene used as a raw material in the manufacture of plastics such as packaging and bottles, has long been integral to domestic industry. “Fife Ethylene Plant has been a cornerstone of chemical production in the UK for 40 years, and its closure reflects the challenges of operating in a policy environment that accelerates the withdrawal of vital manufacturing, and the loss of high-value jobs,” Exxon stated. The company made efforts over recent months to sell the site but was unable to secure a buyer, citing adverse economic and policy headwinds, elevated operating costs, and concerns over plant efficiency.

This decision arrives at a turbulent time for the sector. UK and European chemical producers have been vocal about challenges such as increased energy costs, rising carbon taxes, US tariffs, and mounting competition from lower-cost Chinese imports. Sir Jim Ratcliffe, head of Ineos, warned earlier this year that up to one million jobs could be lost across the European chemical industry within a decade.

Exxon’s UK chairman recently highlighted the severe risks facing the British refining sector, referencing higher carbon costs compared to international competitors. The government’s failure to include refining and chemicals in the upcoming carbon border tax is expected to further disadvantage domestic producers. The Mossmorran closure follows the loss of Ineos’s Grangemouth plant and Prax’s Lindsey refinery, underscoring a worrying contraction.

The company has offered approximately 50 affected employees opportunities to transfer to its larger Fawley site near Southampton, which remains operational and hosts one of Britain’s limited number of oil refineries. ExxonMobil, with headquarters in Houston and a global workforce of around 61000, said it regretted the impact on staff and the local community.

Scottish political leaders have urged the UK government to explore practical support for displaced workers and implement measures to reduce industrial energy costs. A spokesperson for the Department for Business and Trade emphasised the commercial nature of Exxon’s decision, noting efforts to support the site in the face of wider global reorganisation throughout the chemicals industry.